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NEW RULES AND REALITIESFOR THE MODERN ENTERPRISERIC17 RECAP

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TABLE OF CONTENTS

INTRODUCTION 3

BIG IDEAS AND NEW IMPERATIVES FOR SUCCESS 4 How To Win With Pages From Amazon’s Playbook

3 Keys To Converting Traditional Retail To Today’s Digital Realities

The Method Behind Moosejaw Madness

Moving Beyond ‘Us Vs. Them’ To Foster Enterprise-Wide Collaboration

THE CHANGING DYNAMICS OF SUPPLY AND DEMAND 6 To Rethink Retail, Keep The Customer Front And Center

5 Retail Survival Tips From Jet.com

CUSTOMER EXPERIENCE INNOVATION 8

Fabletics Leverages Data-Driven Insights To Enhance CX

Shinola Stores Create A Feast For All Five Senses

COMMUNITY BUILDING: THE NEW PATH TO BRAND EQUITY 10 Communities Require Authenticity To Build Strong Brands

Cultivating Women Leaders To Foster Growth And Profitability

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The 2017 Retail Innovation Conference brought together key innovators and disruptive leaders who shared best practices and predictions for the short- and long-term future of retail. The influence of digital tools and technology took center stage as a key factor in driving future business success for today’s omnichannel retailers, especially those traditionally rooted in brick-and-mortar. “You cannot handicap your business by not accounting for digitally influenced sales,” noted Wayne Duan, Director of Digital Commerce for Walgreens.

Testing new ideas — quickly and across the entire business — also is a vital component of business success in today’s fast-changing retail environment. “Are you testing ideas from the board room to the stock room?,” queried keynote speaker Bryan Eisenberg in his presentation, titled: Winning With Pages From Amazon’s Playbook.

Read on to uncover some of the most important takeaways retailers need to have in their arsenal in 2018 and beyond.

Executives from Moosejaw, Walmart, Gilt, Fabletics, Walgreens and many more covered the hottest retail topics, including:

• Experiential vs. Transactional Marketing• Continuity-Based Retail• Powering CX and Personalization with VoC• Online Retail Disruption• Forging Community-Commerce Connections

Industry experts and analysts from Deloitte, IDC, BRP Consulting and others also weighed in on what’s next in retail, with a focus on:

• Retail Innovation Labs• Artificial Intelligence• EMV and other Payment Innovations• Virtual Reality Success Stories• Learnings From Amazon’s Playbook

By the Retail TouchPoints editorial staff

NEW RULES AND REALITIES FOR THE MODERN ENTERPRISE

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How To Win With Pages From Amazon’s Playbook

The “Four Pillars” of Amazon’s success — customer centricity, continuous optimization, a culture of innovation and corporate agility — aren’t a well-guarded secret. In fact, any retailer can make use of them, according to RIC17 keynote speaker Bryan Eisenberg. But success depends on how retailers execute on these pillars. One way is with relentless testing: in 2004 Amazon was running 200 tests per month, but last year it was up to 1,900 per month, according to Eisenberg. He recommends that retailers ask themselves:

• How do you measure success?• How often are you experimenting?; and• Are you testing ideas from the board room to the stock room?

3 Keys To Converting Traditional Retail To Today’s Digital Realities Even with more than 8,200 stores nationwide, Walgreens refuses to rest on its laurels, continuing to redefine what convenience means to consumers.

Wayne Duan, Director of Digital Commerce at Walgreens, shared three tips for creating a more convenient retail experience:

• Embrace the “digital commerce iceberg”: Infuse digitally influenced sales into KPIs and measurement DNA to truly measure the sales impact of every product;• Collaborate with third-party partners: Provide a platform that allows partners to tap into their assets and assist in lead generation, conversion and analysis. For example, Walgreens has partnered with delivery services Deliv, Postmates, Google Express and Tapingo to bolster

its same-day delivery capabilities. “You cannot obsess over taking the entire value chain,” said Duan; and• Remove friction at all touch points through better communication, whether that’s through improved signage, digitizing coupons, integrating Apple Pay within the checkout or introducing ship-from-store delivery.

BIG IDEAS AND NEW IMPERATIVES FOR SUCCESS

“Infuse digitally influenced sales

into KPIs and measurement DNA

to truly measure the sales impact of

every product.” — Wayne Duan,

Walgreens

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W A Y N E D U A N , W A L G R E E N S

B R Y A N E I S E N B E R G , A U T H O R

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The Method Behind Moosejaw Madness

Either you get the Moosejaw sense of humor or you don’t — but those that do become loyal fans of “Moosejaw Madness,” according to CMO Dan Pingree. For example, the stickers Moosejaw sends with its packages include messages like Happy Earth Day! Has it been 4.543 billion years already?, or a Valentine’s Day sticker showing a bouquet with the caption I murdered some flowers for you. But it’s all part of the Moosejaw Experience, which has generated a 3X growth in online revenues over the past six years and led to the retailer’s recent acquisition by the Walmart e-Commerce division.

Pingree identified “four truths” about a notable e-Commerce/retail experience in his RIC presentation. A truly notable experience:

• Stems from having a clear purpose and set of values that relate directly to the customer — not a target revenue number;• Requires purposeful focus, significant investment (sometimes

to the detriment of short- term revenues) and relentless execution;• Is almost impossible for competitors and/or new entrants to copy; and• Is a common trait of all surviving and thriving retailers.

Moving Beyond ‘Us Vs. Them’ To Foster Enterprise-Wide Collaboration

As retailers evolve to match shopper demands, CIOs must get their IT team and the rest of the organization on the same page.

Four leading retail CIOs, from The Vitamin Shoppe, A.C. Moore, PVH and Six Flags Entertainment Group, revealed how they handle digital transformation within their companies and foster collaboration between their IT teams and the rest of the organization.Key takeaways included:

• IT teams need to engage with other departments early on if they want a unified direction for

business strategies, especially when considering partnerships with external vendors;• CIOs must make time to get down to the store level, to observe how associates and cashiers actually are working with the technology, because management often doesn’t get that daily visual;• Retailers must establish trust in their newer and younger employees, and mustn’t be afraid to make mistakes — even if some are made throughout an IT transition process.

“A truly notable retail experience requires

purposeful focus, significant investment

and relentless execution.”

— Dan Pingree, Moosejaw

D A N P I N G R E E , M O O S E J A W

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To Rethink Retail, Keep The Customer Front And Center

A panel discussion led by Kasey Lobaugh, Chief Retail Innovation Officer at Deloitte, confronted a seeming paradox. Headlines have been full of retail bankruptcies, store closings and financial woes — but Deloitte data indicated that holiday 2016 was the strongest season since 2011.

Panelists, who included Rose Hamilton, former Chief Digital Officer at The Vitamin Shoppe; Chau Banks, EVP and CIO of New York & Company; and Jason Morris, VP of Retail Technology for Walmart, agreed that keeping the customer front and center must be part of any retailer’s basic business strategy.

“It’s no longer about being omnichannel, it’s about being able to turn your customer into an omni-customer,” said Banks. “It’s not about the way we sell it, but about the way she buys it.”

“The data that exists to understand customers gets smarter every day,” Hamilton noted. “Going back to prioritizing and putting the customer first, and figuring out where to put your effort, is where the challenge is.”

Additionally, retailers should not be afraid of healthy competition, particularly if the end result is a happier, more satisfied customer.

“We’re trying to optimize the products the people want; we try to provide them to them in a way that they see value in them — whether it’s price or personalization,” said Morris. “Then, it’s about getting the product to the customer. So whoever can optimize those three pillars of retail best will win. But others will win also, because winning is not exclusive.”

“It’s no longer about being omnichannel,

it’s about being able to turn your customer into an

omni-customer. It’s not about the way

we sell it, but about the way she buys it.”

— Chau Banks,

New York & Company

K A S E Y L O B A U G H , D E L O I T T ER O S E H A M I L T O N , T H E V I T A M I N S H O P P E ( F O R M E R )

THE CHANGING DYNAMICS OF SUPPLY AND DEMAND

J A S O N M O R R I S , W A L M A R T C H A U B A N K S , N E W Y O R K & C O M P A N Y

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5 Retail Survival Tips From Jet.com

Although only 8% of all goods are bought online, it’s becoming easier for consumers to score a widening array of common goods with the click of a mouse.

Josh Wais, Emerging Technology and Strategy Lead at Jet.com, presented five things retailers can do to survive and thrive in both online and offline retail:

1. Go Where Others Aren’t: Think about your unique value proposition and how it’s going to serve your customers, so that they’re going to choose you rather than someone else.

2. Embrace Experience: Retailers didn’t have to compete with experience in the past, but they do now.

3. Capture The Entire Customer Lifeline: “You might lose money on your first transaction, but it’s worth it if you can get that customer to keep coming back,” said Wais.

4. Focus On Delivery: “We’re going to hear more about being able to use traditional online methods with in-store methods,” said Wais.

5. Act Early: “Seize customers and get them to start shopping with you. If you don’t do it now, you are going to have to pay a lot more to acquire those customers [later].”

“Seize customers and get them to

start shopping with you. If you don’t

do it now, you are going to have to

pay a lot more to acquire those

customers [later].”

— Josh Wais, Jet.com

J O S H W A I S , J E T . C O M

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Fabletics Leverages Data-Driven Insights To Enhance CX

Fabletics gathers extensive data from the 1.2 million loyal members of its subscription program, based both on their online interactions and from visits to the retailer’s 22 brick-and-mortar stores. “More than 40% of the people coming into stores are members, so we can track their one-to-one interactions in the physical environment,” said Dustin Netral, SVP of Fabletics.

The brand also makes a particular point to use all this data to obtain a competitive edge. Netral identified four ways the retailer leverages data to enhance the customer experience:

• Sending a personalized “monthly boutique” email to each member, using a continuously refined algorithm to build the selection and offers; • Offering community-based perks such as digital workout classes;• Providing call center agents with complete customer data, including items currently in a customer’s shopping cart, those she’s looked at on the web site and her purchase history;• Beginning in June 2017, adding an OmniCart function that allows shoppers to complete transactions started in the physical store on their smartphones.

Want more? Watch exclusive videos from this year’s Retail Innovation Conference.

WATCH THE SESSIONS

CUSTOMER EXPERIENCE INNOVATION

D U S T I N N E T R A L , F A B L E T I C S

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Shinola Stores Create A Feast For All Five Senses

Shinola, a brand founded with a goal of making quality products in America — specifically troubled Detroit —also has embraced the tenets of experiential retail in the company’s 24 brick-and-mortar stores. (An additional eight stores are scheduled to open by the end of 2017.) “We call it the Five Senses of the Guest Experience,” said Bridget Russo, Shinola CMO at an RIC17 breakout session. She explained all five:

Sight: Customers can mix-and-match Shinola watch straps and faces to get a style that works for them. The brand also partners with local artists and curators at stores in Washington, D.C. and Miami to provide each store with its own “look”;

Sound: Since adding audio products such as vinyl turntables — a category bringing in 80% of new customers — each store gets a packet of vinyl every month that allows managers to curate playlists.

Touch: The feel of Shinola’s leather goods adds a tactile element to the store experience. Taste: Several stores include coffee bars, and the brand has developed Shinola Cola. What had been simply an in-house brand has attracted interest from Whole Foods.

Smell: Shinola candles create a unique scent, and some stores have included floral shop pop-ups. “We want to connect with the local community,” said Russo. “There are overall brand guidelines, but the

“At the Shinola stores, we’re going

for the feeling of walking into

someone’s home.”

— Bridget Russo, Shinola

design varies by location. Detroit has a coffee shop and the bikes we sell are assembled in the store, but that doesn’t happen in every location. We’re going for the feeling of walking into someone’s home.”

B R I D G E T R U S S O , S H I N O L A

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Communities Require Authenticity To Build Strong Brands

With Amazon continuing to dominate market share and e-Commerce merchants facing fewer barriers to entry, retailers should realize the competitive value of building a community that engages the consumer outside the purchase.

“You can buy a lot of Facebook likes, but that’s not a community,” said Marta Wohrle, Founder and CEO of Truth in Aging. “Building a community is generally a one-on-one process.”

Kelly Stickel, Founder and CEO of Remodista, moderated a panel discussion in which Wohrle and three retail executives from Draper James, Orchard Mile and Lively

shared advice on building flourishing communities for e-Commerce brands.The panelists stressed the importance of:

• Partnering with complementary brands on community projects to plan more focused events;• Creating a dialogue that goes beyond the product to foster a feeling of authenticity; and• Cross-promoting editorial content on social platforms to generate more conversation among a potential new audience.

“You can buy a lot of Facebook likes,

but that’s not a community.”

— Marta Wohrle,

Truth in Aging

J E N N I E B A I K , O R C H A R D M I L EK A T H E R I N E B R O D I E , D R A P E R J A M E S

COMMUNITY BUILDING: THE NEW PATH TO BRAND EQUITY

K E L L Y S T I C K E L , R E M O D I S T A M A R T A W O H R L E , T R U T H I N A G I N G

M I C H E L E C O R D I E R O G R A N T , L I V E L Y K A T H E R I N E B R O D I E , D R A P E R J A M E S

J E N N I E B A I K , O R C H A R D M I L E

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Cultivating Women Leaders To Foster Growth And Profitability

During a frank panel discussion, female executives from Google, Revlon/Elizabeth Arden, Women2Watch/Remodista and ?What If! Innovation Partners shared insights into breaking the virtual glass ceilings within their organizations and the entire business world.

Four pillars of the discussion included: Innovation, Allies, Mentorship and Community Support. Key questions were answered:

• What is the balance between including men in the conversation and providing women-only

opportunities for development?• What community efforts does your company provide to women outside the workplace?• How do we foster the next generation of young women leaders in the workplace?

Panelist Helaina Roman, Senior Strategist at Google, said one way to foster change was to “influence the influencers,” for example by giving parents the tools to talk to girls about technology. Other panelists recommended taking a non-gender-specific topic, such as caregiving, and getting both genders involved as a great way for women to develop allies.

“Influence the influencers, for

example by giving parents the tools to

talk to girls about technology.”

— Helaina Roman,

Google

H E L A I N A R O M A N , G O O G L E

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Retail TouchPoints is an online publishing network for retail executives, with content focused on optimizing the customer experience across all channels. The Retail TouchPoints network is comprised of a weekly e-newsletter, special reports, web seminars, exclusive benchmark research, an insightful editorial blog, and a content-rich web site featuring daily news updates and multi-media interviews at www.retailtouchpoints.com. The Retail TouchPoints team also interacts with social media communities via Facebook, Twitter and LinkedIn.

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